Fed's Inflation Measure Surprises with Lower Than Expected Rise, Markets React

Reported 1 day ago

The Federal Reserve's primary inflation measure, the Personal Consumption Expenditures price index, increased by 2.4% year-over-year for November 2024, falling short of economist projections of 2.5%. This unexpected result alleviated market tensions following the Fed's recent warnings about increasing price pressures. While personal income and spending showed modest growth, the market reacted positively, with the U.S. dollar falling and equities recovering from earlier losses. The Fed has indicated a cautious approach to future rate cuts, heightening market sensitivity to inflation data.

Source: YAHOO

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